What does the Liberal party’s against-the-odds victory in the federal election mean for your business and your personal wealth? Attendees at Matthews Steer’s Post-Election Economic Update event on May 22 were treated to an entertaining and insightful analysis of Australia’s economic outlook from investment expert Jonathan Pain as the Liberal Party embarks on a third term in office.
“I believe in miracles and so does Scott Morrison,” said Pain. “This guy is a triple gold triathlete. I used to do national roadshows; all of Australia in five days, and I'd go home on Friday night and literally collapse. Scott Morrison – was it a five-week campaign? He's superhuman, really quite truly remarkable.”
Election result notwithstanding, Pain anticipates a softening of the Australian economy, saying: “By accident of geology and geography, we are indeed the lucky country; we've broken the world record for the longest ever economic expansion, and my view is that if the Reserve Bank does not cut rates aggressively, I'm afraid I see a recession here in Australia.”
But he said that Australia’s natural attributes would help the country to weather the economic storm, highlighting that Australia now tops a list of Chinese CEOs’ preferred investment destinations – a list upon which it has never previously featured!
“I think the housing market will weaken, but at the end of the day there is so much going for Australia,” said Pain. “The bigger picture tells us about rule of law, corporate governance. The vibrant democracy, a vast continent with a tiny, weeny population. And never underestimate the quality of clean air, clean water, and clean soil.
“The terrible prices being paid in China and India for their remarkable economic performance, is tragic environmental degradation. And you wonder why everyone wants to come here!
Pain called for greater scrutiny of social media and reality television, saying that all Australians need to play a part in exposing the dangers of evolving communications tools and shock TV. “These little dark places within social media – terrible things are happening – and I want more light to be shone on these areas,” said Pain. “I'm getting quite fearful of the power of social media as a purveyor of ludicrous nonsense.
“While we're worrying about watching Married at First Sight, Indonesia and Vietnam are building schools and factories, and that's something we need to deal with in terms of our new economic reality."
Matthews Steer’s Post-Election Economic Update opened with an insight into the current Australian political landscape care of MC Brett McLeod, while Matthews Steer’s head of taxation compliance Damian James shared what the Liberal Party’s victory means for tax and superannuation.
Kelly O’Brien from the financial planning team wrapped up the event at Essendon Field’s Australian Events Centre by introducing an innovative new client wealth portal which will enable Matthews Steer clients to keep vital information about their entire financial world at their fingertips.
If you would like more information about how Matthews Steer can assist you and your businesses with accounting, advisory and financial planning, or you would like more information about the client wealth portal, please email firstname.lastname@example.org.